Rail Vikas Nigam Ltd. (RVNL) shares surged by 8% on the final trading day of 2024 after the company was declared the lowest bidder for two significant railway projects. This rally ended a nine-session losing streak for the stock. At 11:50 AM, RVNL shares were trading at Rs 427.4 on the NSE, marking a 4.7% increase from the previous day’s close.
The first one is for Rs 137 crore and was secured from the Central Railway. Part of this contract is the designing, supply, erection, testing, and commissioning of a 132/55 KV traction substation along with sectioning posts and sub-sectioning posts for the Bhusaval-Khandwa section. In addition, there is a modification of the existing 2 x 25 KV traction system with Scott Connected Transformer for targeting 3000 MT loading. This contract is required to be completed in 24 months.
The second project worth Rs 404 crore is from the East Coast Railway. The work includes construction of 27 major bridges and allied earthworks, protection works, and miscellaneous works between Tikiri and Bhalumaska stations as part of the Koraput-Singapur Road Doubling Project under Waltair Division. The project shall be completed in a period of 30 months.
Shares of RVNL have scaled remarkably in the calendar year 2024 so far. The RVNL stock has more than doubled investors’ wealth with gains exceeding 100% plus. For a clear view, consider that in the same period, the Nifty 50 index has scaled higher by about 8.5%, showing how far the market is away from what the RVNL has gone up to.
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Source: Moneycontrol
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